Italian two-wheeler parts maker Verlicchi on Friday announced its India foray with the formation of a joint venture with Gurgaon-based component supplier Hema Group.

Italian two-wheeler parts maker Verlicchi on Friday announced its India foray with the formation of a joint venture with Gurgaon-based component supplier Hema Group.

The 50:50 joint venture, Verlicchi-Hema Automotive Co, will set up its first manufacturing facility at Hosur near Bangalore at an investment of Rs 17 crore. "Verlicchi wanted to enlarge its footprint across the world, India is a booming country, but it produces only 70 lakhs motorcycles annually compared with 2.5 crore in China. So it has a great potential," Verlicchi Group Managing Director Alessandro Verlicchi told PTI.

The Verlicchi Group mainly manufactures two-wheeler frames. The JV would start production from November 2009 with an initial capacity of three lakh frames per annum, expandable up to five lakh per annum. "Our main focus will be to produce frames but we will also manufacturer exhaust system, rear forks, fuel tanks and other fabricated parts," Hema Engineering Industries group managing director Chandresh Jajoo said.

He said, the JV would initially invest Rs 17 crore in the upcoming plant and is aiming at a turnover of Rs five crore in 2010. "Depending upon demand, we will set up more facility in the coming years as we aim to increase our turnover to Rs 25 crore in the next three years," Jajoo said.